I am not religious, but I can appreciate there's a lot of sense in this 1940s quotation, attributed to US theologian Reinhold Niebuhr.
For a start, it has been three years since the economic downturn began and things don't seem to be getting any better. Wage growth is stagnant, inflation is more than double the 2.0 target and the International Monetary Fund expects families to be worse off by £1,500 a year for the next five. The age of financial prosperity is well and truly over and, since the ordinary person has no control over the price of petrol or gas or eggs (other than to buy or not to buy), it is clear we need a new strategy.
Urgently, a shift in attitudes is required. Recent reports about the rising cost of retirement and care in old age highlight the need to make our own provisions for the future, instead of relying on the State. Organisations can help employees understand this by providing access to accurate and unbiased financial guidance and support.
Financial education in the UK is poor, yet capability in this area is emerging as an increasingly crucial life skill. Anyone left behind will suffer, in the same way those without access to the internet did just a few years ago. In this country, it is a terrible fact that being poor costs you more, because of expensive pre-paid gas and electricity cards, rented appliances and higher interest charges on debt. Research by Save the Children found that the poorest in society pay a 'poverty premium' equivalent to £1,300 a year for basic goods and services.
Almost a quarter of Brits (22%) have now reached their 'affordability tipping point', and can no longer make ends meet. A further 30% could not cope with further cost-of-living increases in excess of £100 a month, according to a survey by moneysupermarket.com.
When money is tight, knowing how to manage money is vital and in many cases will necessitate some behavioural changes. Organisations can facilitate this in a number of ways: by providing employees with access to budgeting tools and other financial modellers, by allowing employees to organise finances or seek guidance within work time, and by offering money-saving employee benefits.
In addition to the provision of financial education, organisations can set up a 'cycle to work' scheme, to help people save on petrol costs – or encourage car-sharing.
Research by Sainsbury's Finance suggests that 1.3 million motorists have given up driving over the past 12 months because of rising costs, while 45% (16.5 million people) are driving less and 7% are starting to car-share.
Alternatively, allowing more flexible working hours may enable individuals to travel off-peak and save on rail fare.
Crucially, developing strategies to identify employees who are struggling financially, early on and to direct them towards appropriate support and advice services, can lessen the risk of a serious debt problem and long-term absence, while promoting open communication.
Communication will become even more important when pension scheme changes are introduced next year. Individuals contracted out of the additional state pension via a defined contribution pension schemes will be automatically contracted back in.
Additionally, eligible employees will be auto-enrolled into the National Employment Savings Trust (NEST) and required to contribute 4% of earnings. For an average earner on about £25,000 a year, this level of contribution equates to a net 'loss' of £67 a month, prompting fears millions of people will simply opt out of the scheme, citing unaffordability.
Over the next few months, organisations face a hard task in ensuring employees appreciate the need to save for retirement and make sacrifices elsewhere in order to boost their future finances, rather than adopting a 'why worry about tomorrow?' philosophy. Arguably, that is what got us in this mess in the first place and, while we have to accept we can't change the past, we can certainly endeavour to improve the future.
Lauren Peters (pictured) is head of financial education at personal finance adviser, Money in Mind
